Milan-based fashion house Furla has experienced significant growth in the past year in demand for accessible, or affordable, luxury products. That category includes goods that are sold at prices that fall between those for mass fashion and ready-to-wear.
The company announced last week that like-for-like sales rose 23 percent last year. Sales increased by 53 percent in the Asia-Pacific region, 30 percent in the United States, and 28 percent in Europe, excluding Italy. Furla makes a fifth of its sales in Italy, and sales there were up 21 percent.
Furla opened 62 new stores in 2015, including outlets in New York, St. Petersburg, Rome, Shanghai, and Hong Kong. It now has 415 stores around the world.
American brand Michael Kors experienced some of the highest growth in the handbag industry. That was due largely to demand for lower-priced items from Chinese consumers and fashion conscious millennials with limited disposable income. Tory Burch has also seen recent success in the affordable luxury market.
Luxury fashion houses such as Burberry, Gucci, and Prada that sell handbags for higher prices have seen their sales fall. Sales of personal luxury items, including handbags, clothing, watches, and jewelry, grew by just 1 to 2 percent in 2015 at constant currencies. This was primarily because Chinese consumers who had been driving annual growth of over 15 percent cut their spending on luxury items. Sales were also down in the United States and Europe.
Sales at luxury outlet stores are increasing. A report published in December found that sales in “off-price” stores doubled because China’s growing middle class sought quality and value and because shoppers in more mature markets were looking for deals. Markdowns were responsible for over 35 percent of the luxury market.
Furla has also expanded its offerings to include women’s shoes, men’s bags, and eyewear. It has focused on increasing sales in travel outlets, especially airports.
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